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Why is it a good idea to outsource HR?

Is Outsourcing Human Resources a good idea?

Outsourcing Human Resources is an important decision for any company and can understandably lead to some doubts and concerns. Sometimes it is difficult to let go of control and delegate because we are concerned about what might happen when relinquishing control. There is the inevitable fear whether the correct decisions will be made and that the person to whom we delegate the responsibility to is not capable of delivering the same quality of results that we would produce ourselves. That is a very common and real fear, not only in small and family businesses, but also in larger companies.

However, on many occasions, too many responsibilities tend to accumulate, and it becomes impossible to cover them all effectively. This results in a blockage or inactivity in many fundamental processes, hindering a company from growing and continuing its decision-making at an agile pace.

Another common problem is thinking that tasks that we do not carry out on a regular basis are easier than they really are. For example, the process of hiring a new employee. There will be people who will believe that it only consists of reading resumes and arranging interviews. But human resources professionals know that it is a process that can take anywhere from 2 weeks to 6 months, depending on the requirements and the specialization of the position. 

  • HR professionals know how to recognise indicators in a resume that would go unnoticed by an untrained eye. 
  • They know how to verify that the information provided by candidates is reliable and credible.  
  • They provide efficient interview processes, securing the best talent for your business.
  • Furthermore, they’re also knowledgable on the implications of the agreements that are made with candidates, the collective agreements of each sector, the clauses that should be incorporated into each contract; and in turn, can also advise on the post-hiring processes.
  • HR is also instrumental in dealing with managing performance of employees and avoiding any legal issues when having to let staff go.

Outsourcing the Human Resources of a company may seem overwhelming, but in the long run, it can be of great benefit for the company both financially and in terms of helping the company grow efficiently.


Benefits of Outsourcing Human Resources

There are several reasons why a company might consider Outsourcing Human Resources, including:

  • Lack of in-house expertise: If a company doesn’t have the expertise or resources to effectively manage HR tasks, outsourcing may be a good option.
  • Cost savings: HR outsourcing can be more cost-effective than hiring and training a dedicated HR team, especially for small businesses.
  • Increase Efficiency: An external HR provider can bring a level of efficiency and effectiveness to HR tasks that can be difficult to achieve internally.
  • Access to specialized services: An external HR provider may offer specialized services, such as employee benefits or employment law compliance, that a company may not have the expertise to handle internally.
  • Flexibility: HR outsourcing allows a company to scale its HR resources more or less than needed, providing flexibility and agility.
  • Contacts with candidates in technical or scientific fields: There are human resources firms that specialize in different sectors, and have lists of suitable candidates. Therefore, if your company requires candidates with a highly technical profile, experts in technology, biotechnology, and programmers, it will always be more effective for an expert human resources company in that sector to facilitate introductions with your future potential employees.

Our advice

It is important that companies carefully consider the potential risks of outsourcing human resources and take steps to mitigate those risks, such as having strong contracts and maintaining effective communication with the external HR provider. In general, HR outsourcing can be a good option for companies that lack the experience or resources to effectively manage HR tasks, or want to improve efficiencies, access specialized services, or achieve cost savings.